DB:LKG

Stock Analysis Report

Liberty Holdings

Executive Summary

Liberty Holdings Limited, a financial services company, engages in insurance business in Africa.


Snowflake Analysis

Very undervalued 6 star dividend payer.


Similar Companies

Share Price & News

How has Liberty Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LKG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.3%

LKG

1.2%

DE Insurance

2.2%

DE Market


1 Year Return

-50.2%

LKG

-17.1%

DE Insurance

-17.2%

DE Market

Return vs Industry: LKG underperformed the German Insurance industry which returned -17.1% over the past year.

Return vs Market: LKG underperformed the German Market which returned -17.2% over the past year.


Shareholder returns

LKGIndustryMarket
7 Day-1.3%1.2%2.2%
30 Day-43.6%-20.0%-15.7%
90 Day-56.3%-28.2%-24.0%
1 Year-42.5%-50.2%-13.5%-17.1%-14.9%-17.2%
3 Year-41.8%-55.7%9.1%-4.1%-16.4%-23.3%
5 Year-64.5%-75.0%22.2%-2.2%-16.5%-27.8%

Price Volatility Vs. Market

How volatile is Liberty Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Liberty Holdings undervalued compared to its fair value and its price relative to the market?

47.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LKG (€3.1) is trading below our estimate of fair value (€5.87)

Significantly Below Fair Value: LKG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LKG is good value based on its PE Ratio (5.7x) compared to the Insurance industry average (8.7x).

PE vs Market: LKG is good value based on its PE Ratio (5.7x) compared to the German market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: LKG is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: LKG is good value based on its PB Ratio (0.7x) compared to the DE Insurance industry average (0.9x).


Next Steps

Future Growth

How is Liberty Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LKG's forecast earnings growth (6% per year) is above the savings rate (-0.4%).

Earnings vs Market: LKG's earnings (6% per year) are forecast to grow slower than the German market (14.5% per year).

High Growth Earnings: LKG's earnings are forecast to grow, but not significantly.

Revenue vs Market: LKG's revenue is expected to decline over the next 3 years (-27.1% per year).

High Growth Revenue: LKG's revenue is forecast to decline over the next 3 years (-27.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LKG's Return on Equity is forecast to be low in 3 years time (14%).


Next Steps

Past Performance

How has Liberty Holdings performed over the past 5 years?

-9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LKG has high quality earnings.

Growing Profit Margin: LKG's current net profit margins (4.5%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: LKG's earnings have declined by -9.1% per year over the past 5 years.

Accelerating Growth: LKG's earnings growth over the past year (28.4%) exceeds its 5-year average (-9.1% per year).

Earnings vs Industry: LKG earnings growth over the past year (28.4%) exceeded the Insurance industry 17.9%.


Return on Equity

High ROE: LKG's Return on Equity (11.2%) is considered low.


Next Steps

Financial Health

How is Liberty Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: LKG has a low level of unsold assets or inventory.

Debt Coverage by Assets: LKG's debt is covered by short term assets (assets are 3.6x debt).


Financial Institutions Analysis

Asset Level: LKG's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if LKG has a sufficient allowance for bad loans.

Low Risk Liabilities: LKG reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if LKG has an acceptable proportion of non-loan assets held.

Low Risk Deposits: LKG has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if LKG has an appropriate level of bad loans.


Next Steps

Dividend

What is Liberty Holdings's current dividend yield, its reliability and sustainability?

10.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LKG's dividend (10.74%) is higher than the bottom 25% of dividend payers in the German market (1.65%).

High Dividend: LKG's dividend (10.74%) is in the top 25% of dividend payers in the German market (4.87%)


Stability and Growth of Payments

Stable Dividend: LKG's dividends per share have been stable in the past 10 years.

Growing Dividend: LKG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.7%), LKG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LKG's dividends in 3 years are forecast to be covered by earnings (50.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

David Munro (48yo)

2.83s

Tenure

R18,834,000

Compensation

Mr. David Charles Munro, BCom PDGA (UCT), CA(SA), AMP, has been Chief Executive of Liberty at The Standard Bank of South Africa Limited since July 17, 2017. He serves as Chief Executive Officer at Liberty  ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD1.05M) is about average for companies of similar size in the German market ($USD1.38M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Munro
Group CEO & Executive Director2.83yrsR18.83mno data
Yuresh Maharaj
Group Financial Director & Director2yrsR9.57mno data
Sharon Steyn
Head of Investor Relationsno datano datano data
Nerina Bodasing
Divisional Director Group Communicationsno datano datano data
Pumeza Bam
Group HR executive2.83yrsno datano data
Giles Heeger
Executive of Asset Management3yrsno datano data
Jeff Hubbard
Executive of Group Arrangementsno datano datano data
Johan Minnie
Group Executive of Sales3.67yrsno datano data
Berlina Moroole
Chief Risk Officer3yrsno datano data
Benjamin Marais
Chief Information Officerno datano datano data

2.9yrs

Average Tenure

46yo

Average Age

Experienced Management: LKG's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Munro
Group CEO & Executive Director2.83yrsR18.83mno data
Yuresh Maharaj
Group Financial Director & Director2yrsR9.57mno data
James Sutcliffe
Independent Non-Executive Director10.42yrsR2.92mno data
Monhla Hlahla
Independent Non-Executive Director7.58yrsR629.00kno data
John Maree
Non-Executive Chairman5.17yrsR4.65mno data
Angus William Band
Lead Independent Director11.25yrsR2.47mno data
Sibusiso Sibisi
Independent Non-Executive Director11.25yrsR949.00kno data
Simpiwe Tshabalala
Non-Executive Director6.83yrsR59.07mno data
Anthony Cunningham
Independent Non-Executive Director11yrsR2.66mno data
Yunus G. Suleman
Independent Non-Executive Director4.58yrsR1.38mno data

7.2yrs

Average Tenure

62yo

Average Age

Experienced Board: LKG's board of directors are considered experienced (7.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Liberty Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Liberty Holdings Limited
  • Ticker: LKG
  • Exchange: DB
  • Founded: 1957
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: R18.975b
  • Listing Market Cap: R955.762m
  • Shares outstanding: 286.20m
  • Website: https://www.libertyholdings.co.za

Number of Employees


Location

  • Liberty Holdings Limited
  • Liberty Life Centre
  • 1 Ameshoff Street
  • Johannesburg
  • Gauteng
  • 2001
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LBHJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJan 1992
LKGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

Liberty Holdings Limited, a financial services company, engages in insurance business in Africa. The company offers accident, critical illness, disability, income and life protection, medical, and policy protection insurance products, as well as funeral benefits and plans; and annuities, alternate solutions, balanced portfolios, umbrella solutions, investment products, and fund administration services, and consulting services. It serves individuals, families, and businesses. The company was founded in 1957 and is headquartered in Johannesburg, South Africa. Liberty Holdings Limited is a subsidiary of Standard Bank Group Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 22:33
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.